Best CD, MM Rates & Bank Special Deals Thread 2022 - Please post updates here

[PERSonalTime]

Ally is way behind. Three month Treasury is now 1%.

+1

 

[Another Reader]

+1

I will pull my money out of Ally if they don't raise their rates soon. Twice a pittance is still a pittance, but I don't like to reward uncompetitive behavior.

 

[almost there]

I will pull my money out of Ally if they don't raise their rates soon. Twice a pittance is still a pittance, but I don't like to reward uncompetitive behavior.

Same with Ally last month.
Also am moving 431k from Navy. Sad about that... too

 

[John Galt III]

That's certainly tempting. Unfortunately, I know nothing about purchasing treasuries. I better get to work. Thanks for the link.

The 2.99% 5 year treasury is intriguing. I already have a TreasuryDirect account for my I-Bonds, so maybe it will be easy buy a treasury bond. Thanks, gcgang.

 

[ShokWaveRider]

6 year MYGA is fetching 4.3% today. A- Rated AM Best. Not too shabby. I am waiting till the next hike in June to see if it is worth pulling the trigger. Good if you do not need more than 10% a year of your investment, as after the first year you can get that every year penalty free.

As 10 year SPIA are only paying 2.63% right now, you can basically set up your own SPIA instead of paying an Agent to do so for you to get less return. No Brainer Really.

Check Blueprint Income (Recommended/Endorsed by AARP)

https://www.blueprintincome.com/

 

[Eucerin]

For years I have been buying CD through online banking as their rates were relatively higher than regular banks and credit unions. But ever since Administrator guided me to this thread and others last month, I have learned tones. I bought I-bond and treasury bond which I have been stayed away due to not understand enough and scared to step foot in. It's such a revelation that there are so many knowledges here that supporting one another, good feelings.
Some of you have introduced Fido CDs as their rates are pretty good, I have other investments in Fido and like the idea to put the money in one pot. But I don't understand some criteria in Fido CD, such as "call protected yes or no", I read some online, protected yes or no can be good or bad that depends on how the rates shifting upward or downward, although Fido has most in protected yes. Honestly I am still confused. Can anyone explaining to me? Thank you!

 

[npage]

6 year MYGA is fetching 4.3% today. A- Rated AM Best. Not too shabby. I am waiting till the next hike in June to see if it is worth pulling the trigger. Good if you do not need more than 10% a year of your investment, as after the first year you can get that every year penalty free.

As 10 year SPIA are only paying 2.63% right now, you can basically set up your own SPIA instead of paying an Agent to do so for you to get less return. No Brainer Really.

Check Blueprint Income (Recommended/Endorsed by AARP)

https://www.blueprintincome.com/

How do you look at return on SPIA. For instance if I put in a 10 year fixed, and for simplicity $100,000, it returns a monthly payment of $961 at immediateannuities.com . So, $961 a month, is $11,532 per year for ten years or $115,320. Given $100,000 was my principal I am receiving extra $15,320 over 10 years or roughly a 1.5% return? Am I not thinking correctly?

 

[Eucerin]

Also, one more thing.
MYGA is an annuity. My understanding of annuity is that once you past away, the annuity/money is gone. One of my relatives put 401k in annuity and he past away suddenly, entire 35 years 401k is gone. it was hardening.
Why would some people here advocating annuity? I would appreciate some comments and its possible that my interpretation of annuity is not complete.

 

[frank]

from what I understand you can take the annuity with the stipulation that whatever is left when you die goes to your beneficiary.

 

[ShokWaveRider]

Also, one more thing.
MYGA is an annuity. My understanding of annuity is that once you past away, the annuity/money is gone. One of my relatives put 401k in annuity and he past away suddenly, entire 35 years 401k is gone. it was hardening.
Why would some people here advocating annuity? I would appreciate some comments and its possible that my interpretation of annuity is not complete.

Not a MYGA, you are thinking Life SPIA. Just look at a MYGA exactly like a CD but with the interest being deferred until you cash it in.

 

[ShokWaveRider]

How do you look at return on SPIA. For instance if I put in a 10 year fixed, and for simplicity $100,000, it returns a monthly payment of $961 at immediateannuities.com . So, $961 a month, is $11,532 per year for ten years or $115,320. Given $100,000 was my principal I am receiving extra $15,320 over 10 years or roughly a 1.5% return? Am I not thinking correctly?

I use one of the many on line calculators. Here is one.

https://iqcalculators.com/calculator/annuity-rate-of-return-calculator/

Do not fill in interest rate, it will do it for you after you complete the top line.
Take the monthly payout and x 12 for the year.

 

[John Galt III]

Why wouldn’t you just buy Treasuries? Safer, more liquid, and higher rates right now.

1 yr =1.99%
2 yr = 2.61%
5 yr= 2.99%.

https://www.barchart.com/economy/interest-rates

Thanks. The link is useful for seeing the current treasury interest rates.

The government website treasurydirect.gov does not tell you the current rate! (at least I could not find it after 45 minutes of poking around, lol) Probably in there somewhere.

 

[Another Reader]

Ally finally responding to market pressure. E-mail just received.

Update:
Your Online Savings and Money Market Account rates are increasing from 0.50% to 0.60% Annual Percentage Yield (APY) on all balance tiers. Your new APYs go into effect on 05/11/2022, and will appear in your account on 05/12/2022.

I pulled half the balance this morning. Going to buy treasuries and maybe a six month CD from someone more responsive.

 

[npage]

I use one of the many on line calculators. Here is one.

https://iqcalculators.com/calculator/annuity-rate-of-return-calculator/

Do not fill in interest rate, it will do it for you after you complete the top line.
Take the monthly payout and x 12 for the year.

Makes sense now and I can duplicate results with my old HP12C calculator. I was forgetting the time value of money component in that you receive monthly payment right away.

 

[John Galt III]

OK, asking a simple question, since I have spent an hour looking online without success. Ugh.

How do I find the interest rate for a 5 year treasury note?

The 5 year treasury note is auctioned once a month. The next auction is May 25, 2022. I can wait until just before noon on May 25 and check the rate using the link above. Unfortunately the treasurydirect website I will be using to buy the note will not tell me the rate! (Well, I can't find it anywhere on the website,lol)

Sound like a plan? I plan to use the link on May25 to see if the rate is good enough, then pull the trigger. The actual rate ought to be close to the rate shown in the link, right ? (barchart.com)

Thanks

 

[Dtail]

Not a MYGA, you are thinking Life SPIA. Just look at a MYGA exactly like a CD but with the interest being deferred until you cash it in.

+1 definitely not the rules for a MYGA.

 

[jazz4cash]

Some of you have introduced Fido CDs as their rates are pretty good, I have other investments in Fido and like the idea to put the money in one pot. But I don't understand some criteria in Fido CD, such as "call protected yes or no", I read some online, protected yes or no can be good or bad that depends on how the rates shifting upward or downward, although Fido has most in protected yes. Honestly I am still confused. Can anyone explaining to me? Thank you!

If a CD is call protected you are guaranteed that you can hold the CD to maturity. If it is not call protected the bank could “call” (cancel) the CD before maturity and give you your money back along with the interest earned. Up to that point. It really only makes sense for the bank to call a CD if rates have dropped and they can borrow the money more cheaply. We were looking at those Fido call protected vs non protected CDs the other day. The 5 yr call protected CDs were 3.2% vs 3.35 for non-protected. You could think of the difference of 0.15% as insurance. Call protected is <slightly> lower risk / lower reward.

 

[Sue J]

Just saw this one.

Schwab Starter Kit -

https://www.schwab.com/investing-st...W5kTipS6eqDst8R345tDpJ5FBiKw6nyD5kEXRJnVBYurE

Open an account and fund with $50 minimum and the bonus is $101 in 5 stocks that they choose or $101 in cash.

Has anyone done this one?

My account is all set up and funded. They posted the bonus of $101.00 and then used it to buy "slices" of the 5 biggest stocks.

So I now own isty bitsy teeny weeny pieces of AAPL, AMZN, GOOGL, MSFT, and TSLA. Isn't that cute!

This should be fun. I've never owned individual stocks, only mutual funds. And I've already lost $1.72 in value.

Wheee!

 

[Dash man]

Ally Bank is finally increasing the savings rate to 0.60%. I was hoping it’d be a larger increase since they delayed it so long.

 

[Linney]

OK, asking a simple question, since I have spent an hour looking online without success. Ugh.

How do I find the interest rate for a 5 year treasury note?

The 5 year treasury note is auctioned once a month. The next auction is May 25, 2022. I can wait until just before noon on May 25 and check the rate using the link above. Unfortunately the treasurydirect website I will be using to buy the note will not tell me the rate! (Well, I can't find it anywhere on the website,lol)

Sound like a plan? I plan to use the link on May25 to see if the rate is good enough, then pull the trigger. The actual rate ought to be close to the rate shown in the link, right ? (barchart.com)

Thanks

Is this link more helpful? It shows the rates, day by day:

https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value_month=202205

 

[Gotadimple]

Beginning 5/11, Live Oak High Yield savings account increases to.80%APR.

 

[aja8888]

OK, asking a simple question, since I have spent an hour looking online without success. Ugh.

How do I find the interest rate for a 5 year treasury note?

The 5 year treasury note is auctioned once a month. The next auction is May 25, 2022. I can wait until just before noon on May 25 and check the rate using the link above. Unfortunately the treasurydirect website I will be using to buy the note will not tell me the rate! (Well, I can't find it anywhere on the website,lol)

Sound like a plan? I plan to use the link on May25 to see if the rate is good enough, then pull the trigger. The actual rate ought to be close to the rate shown in the link, right ? (barchart.com)

Thanks

John, with treasury auctions, the rate is not set until the auctions are overs as many bids are taken. Look at the most recent closed auctions to get the rate that those went off at. It should be close to that for the upcoming auctions.

 

[audreyh1]

Ally finally responding to market pressure. E-mail just received.

Update:
Your Online Savings and Money Market Account rates are increasing from 0.50% to 0.60% Annual Percentage Yield (APY) on all balance tiers. Your new APYs go into effect on 05/11/2022, and will appear in your account on 05/12/2022.

I pulled half the balance this morning. Going to buy treasuries and maybe a six month CD from someone more responsive.

Yeah, I had already moved funds from savings to another institution, but at least my no penalty CD will roll over at the higher rate. The remaining ones will get upgraded once rates are a bit higher. Or I may move to treasuries.

 

[audreyh1]

OK, asking a simple question, since I have spent an hour looking online without success. Ugh.

How do I find the interest rate for a 5 year treasury note?

The 5 year treasury note is auctioned once a month. The next auction is May 25, 2022. I can wait until just before noon on May 25 and check the rate using the link above. Unfortunately the treasurydirect website I will be using to buy the note will not tell me the rate! (Well, I can't find it anywhere on the website,lol)

Sound like a plan? I plan to use the link on May25 to see if the rate is good enough, then pull the trigger. The actual rate ought to be close to the rate shown in the link, right ? (barchart.com)

Thanks

My CNBC app provides real time rates for all the treasury durations. This is probably the best indicator of the trading range.

For treasury auctions, schedules and results this page on Treasury Direct gives a good overview https://www.treasurydirect.gov/instit/instit.htm?upcoming. Notice also the Auction Results tab.

 

[Dtail]

Yeah, I had already moved funds from savings to another institution, but at least my no penalty CD will roll over at the higher rate. The remaining ones will get upgraded once rates are a bit higher. Or I may move to treasuries.

Don't you have to cancel the existing no penalty one and establish a new no penalty one?